Ahmedabad-headquartered SME lending startup Lendingkart Finance Limited has raised about $7.7 Mn (INR 50 CR) debt funding from YES Bank.
The startup will use the recently raised funds to further expand its reach to SMEs operating in Tier 3 and below cities facing a lack of formal credit facilities.
Harshvardhan Lunia, CEO and co-founder, Lendingkart Technologies said, “YES Bank is a dynamic and innovative institution with sound knowledge of the Indian financial sector while also undertaking substantial work towards promoting fintech in the country. We firmly believe that our relationship will prove to be mutually advantageous, complementing each other’s strength as we drive true financial inclusion.”
Lendingkart is an instant working capital finance platform. According to a company statement, Lendingkart Finance Limited is a non-deposit taking NBFC, offering small business loans for SMEs in India. The company aims to transform small business lending by providing easy access to credit for SMEs. The company is currently based in Ahmedabad, Bengaluru, and Mumbai, but has a service reach across India. The company claims that, till date, it has disbursed more than 11,000 loans to over 7,500+ SMEs present across India.
The startup uses analytics and big data scoring to evaluate a prospective client’s business. As of now, it provides short-term working capital loans ranging from $740 to $14.8K (INR 50K to 10 Lakhs). The loan amount is then disbursed through affiliated lenders or lending partners within a short span of three days.
As per a Nasscom-KPMG report, the Indian fintech software market is forecasted to touch $2.4 Bn by 2020, from the current $1.2 Bn. Most of the market is driven by the lending and insurance verticals. Other startups in the SME lending segment apart from Lendingkart include Quikrupee, SMEcorner, Innoviti, Biz2credit, smehelpline, and smegetmoney.